I read this article that was sent to me by Bill Sandvig of Movement Mortgage and thought it would be worthwhile sharing.
"We could all use a little good economic news these days, what with the state of the U.S. stock market and financial crises happening all over the globe. Well, it’s our lucky day — we found some great news!
Financial services giant Morgan Stanley has released its financial outlook for 2016, and it’s looking positively rosy. According to their experts, low unemployment, lower household debt, a strengthening dollar with improved purchasing power, and lower energy costs are all contributing to the economic recovery. In fact, numerous financial experts are weighing in with positive news:
- CNN Money reports that nearly 300,000 new jobs were added in 2015. The unemployment rate has been around 5% the last couple of months, which is about half what it was in 2009.
- Wages have also been on the rise. The Economist notes that through October 2015, hourly wages rose by 2.5%.
- Rising wages plus lower and more stable household debt should spur consumer spending, says Morgan Stanley’s chief U.S. economist.
- The housing market recovery is continuing. Millennials are finally ready to become homebuyers, helping prices and home sales rise.
All of this has led to the Fed being more comfortable with raising interest rates — which may happen three times this year, according to a Reuters poll — and has halted the quantitative easing program.
But here’s where the news gets even better: According the economists at Morgan Stanley, this recovery should last well into 2020. Yes, that’s right: we should expect another four years of growth and increasing economic expansion.
So what does this mean for you as a potential homebuyer? If interest rates rise, then mortgage interest rates will also rise. This means it will be more expensive for you to buy a new home. However, you’ll have more disposable income and less debt, meaning you may have access to more cash.
It could get more expensive to make renovations as well, as more people have more spending money and contractors become increasingly in demand, meaning they can charge more money and will have less time for new clients.
So what this means is, now is the best time for you to be purchasing your new home. Come on in and we can go over the numbers together, and you’ll see how low interest rates plus your future increased earnings (and all the other great things happening economically) will contribute to you getting a great home for a great price. Contact me today!"
To talk about mortgages, credit and payments, call Bill Sandvig at Movement Mortgage (843) 300-7870.
To talk about becoming a homeowner (i.e. renting vs. buying) call us on (843) 900-0155.